The EU and its 27 Member States have significantly increased their Official Development Assistance (ODA) for partner countries to €66.8 billion in 2020.
This is a 15% increase in nominal terms and equivalent to 0.50% of collective Gross National Income (GNI), up from 0.41% in 2019, according to preliminary figures published today by the Organisation for Economic Co-operation and Development’s Development Assistance Committee (OECD-DAC).
The EU and its Member States thereby confirm their position as the world’s leading donor, providing 46% of global assistance from the EU and other DAC donors, and have taken a major leap forward towards meeting the commitment to provide at least 0.7% of collective GNI as ODA by 2030.
Commissioner for International Partnerships, Jutta Urpilainen, stated, “Team Europe has significantly increased its contribution of Official Development Assistance compared to last year. This is crucial at a time when so many people in our partner countries face significant health, economic and social challenges linked to the COVID-19 crisis. The latest figures show that 10 years ahead of the due date to deliver on our commitment to provide 0.7% of our collective GNI as ODA, we are more determined than ever to achieve this target.”
Overall, 17 Member States increased their ODA in nominal terms in 2020 compared to 2019, with the strongest nominal increases coming from Germany (+€3,310 million), France (+€1,499 million) and Sweden (+€921 million), and further increases coming from Austria, Belgium, Bulgaria, Croatia, Cyprus, Denmark, Finland, Hungary, Latvia, Malta, Poland, Romania, Slovakia and Slovenia.
The EU institutions’ ODA (meaning the European Commission and the EIB) increased by €3.7 billion (27%) overall in 2020 in nominal terms. 15 Member States improved their ODA relative to their GNI by at least 0.01 percentage points: Austria, Belgium, Bulgaria, Croatia, Denmark, Finland, France, Germany, Hungary, Latvia, Malta, Romania, Slovakia, Spain and Sweden. In Cyprus and Greece, ODA as a share of GNI decreased by at least 0.01 percentage points.
In response to the Coronavirus pandemic, the EU, its Member States, and the European financial institutions, together with the European Investment Bank and the European Bank for Reconstruction and Development, have combined their financial resources as Team Europe, mobilising over €40 billion in support to partner countries in 2020. 65% of this amount was already disbursed in 2020 in support of the immediate humanitarian needs; health, water, sanitation and nutrition systems, as well as tackling the social and economic consequences of the pandemic.
The unprecedented nature of the COVID-19 crisis has put a huge stress on public finances and debt sustainability of many developing countries, affecting their ability to achieve the Sustainable Development Goals. This is why, in May 2020, President von der Leyen called for a Global Recovery Initiative, linking debt relief and investment to the SDGs to promote a green, digital, just and resilient recovery. The Global Recovery Initiative is about shifting to policy choices supporting green and digital transitions, social inclusiveness and human development while enhancing debt sustainability in partner countries.
ODA is one of the sources of financing to deliver on the SDGs, although more transparency is needed on all sources of finance for sustainable development. As an important step in that direction, data on Total Official Support for Sustainable Development (TOSSD) has been collected and published for the first time, increasing transparency on all officially-supported resources for the SDGs, including South-South cooperation, support to global public goods such as vaccine research and climate mitigation as well as private finance mobilised by official interventions.